I L L INO I S E C O NOM IC
R E V I EW
The Monthly Illinois Economic Review contains information on national, statewide, and local economic
performance by measuring job growth, unemployment, and business activity. This information is compiled by
IGPA Economist Geoffrey Hewings, director of the Regional Economics Applications Laboratory at the
University of Illinois at Urbana-Champaign with assistance from Yizhou Zhang and Kijin Kim.
DECEMBER 2015
EMPLOYMENT
E MP LOY ME N T DA TA S UM M A RY








Illinois gained 400 jobs in November 2015, compared with a 13,700 job gain in October 2015.
Compared to November 2014, Illinois has added 35,700 jobs. The three-month moving average, a
more stable measure of labor market, showed an increase of 3,700 jobs per month.
The Nation added 211,000 jobs at a rate of 0.15%, compared with a 298,000 job gain in October
2015. The three-month moving average was up by 218,000 jobs per month.
The RMW added 21,100 jobs in November after a 62,500 job gain in October 2015. The three-month
moving average was up by 11,300 jobs per month.
Since the beginning of the recession in December 2007, Illinois has positive job gains 51 times and
negative job changes 43 times. The state of Illinois now has a net loss of 60,700 jobs since the
beginning of the recession in December 2007.
Since January 2010, when Illinois employment growth resumed after the national recession, Illinois
has added 342,300 new jobs.
By November 2015 in Illinois, Professional & business services and Leisure & hospitality have both
recovered to their previous employment peak levels. The 12-month-ahead job recovery forecasts
show that the future recovery rates in Illinois will increase for every sector except Manufacturing and
Information.
The shadow unemployment rates for Illinois, RMW and the Nation were 10.19%, 10.84% and
10.95%, compared to official unemployment rates of 5.7%, 4.5% and 5.0%.
Through November 2015, the cumulative job growth for Illinois, RMW and the Nation compared to
January 1990 stood at 12.51%, 17.21%, and 30.93%, respectively.
N OV E MB E R
2015
E MP LOY ME N T C HA RT
December
Total NonFarm
Employment
Growth
Rate %
2015
Nation
0.15
211,000
1.88
2,637,000
10.95%
Positive
RMW*
0.11
21,100
1.48
292,400
10.84%
Illinois
0.01
400
0.61
35,700
10.19%
Oct 2015– Nov 2015
Number of
Jobs
Last 12 months
Growth
Rate %
Number
of Jobs
Nov 2015
Shadow
U.R. **
*RMW stands for Rest of the Midwest including six states, Indiana, Iowa, Michigan, Missouri, Ohio and Wisconsin.
**REAL has estimated a shadow unemployment rate; this is calculated as the unemployment rate that would be observed if labor force participation rates
matched the average for the 15-year period from 1990 to 2004.
2
T OTA L N O N - FA R M E M P L OY M E N T G ROW T H R A T E J A N 1990 – N OV E M B E R 2015
135.00
130.00
125.00
120.00
115.00
110.00
105.00
100.00
National
RMW
IL
95.00
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
L A S T 1 2 M O N T HS TOTA L NO N - FA R M E M P L OY M E NT GROW T H R AT E S D E C 2 0 1 4 – N OV
2015
Dec/14
Jan/15
Feb/15
Mar/15
Apr/15
May/15
Jun/15
Jul/15
Aug/15
Sep/15
Oct/15
0.40%
0.30%
0.20%
0.10%
0.00%
-0.10%
-0.20%
Nation
RMW
IL
-0.30%
3
Nov/15
Total Non-farm Employment growth rate by Sector October 2015 – November 2015
20 Construction
30 Manufacturing
40 Trade, transportation & utilities
50 Information
55 Financial activities
60 Professional & business services
65 Education & health
70 Leisure & hospitality
80 Other Services
90 Government
-1.00%
-0.50%
0.00%
0.50%
1.00%
Nation
S HA D OW
1.50%
RMW
2.00%
2.50%
IL
UN E MP LOY ME N T
Unemployment Rate: Official and Shadow
The unemployment rate estimates the percentage of workers in the labor force who are currently unemployed
but who are seeking work. The labor force participation rate is the percentage of the population 16 and older
who are either working or actively seeking work. The participation rate has declined since the 1990s and thus
a number of analysts feel that the official unemployment rate does not account for a larger number of people
who have dropped out of the labor force. REAL has estimated a shadow unemployment rate; this is calculated
as the unemployment rate that would be observed if labor force participation rates matched the average for
the 15-year period from 1990 to 2004.






In the 1990s, the average participation rate was 68.2% in Illinois whereas in 2010, it has been only
66.6%.
For the 15 years from 1990 to 2004, the average participation rate was 68.1% in Illinois.
In the 1990s in the US, the average participation rate was 65.5% whereas in 2010, it has been 66.0%;
for the 15 years from 1990 to 2004, the average participation rate was 66.6%.
The figures on the next page show the difference between the official and shadow unemployment
rate for Illinois (top figure) and the US as a whole (bottom figure).
After 2000, the gap between Illinois’s official and shadow unemployment rates increased until 2006
when it began to shrink. However, the gap went increasing again since 2010.
To bring the two together a further 74,100 jobs would need to be created in Illinois.
4
Illinois

14%
12%
Unemployment Rate
Shadow Unemployment Rate
10%
8%
6%
4%
2%
0%
US

14%
Unemployment Rate
Shadow Unemployment Rate
12%
10%
8%
6%
4%
2%
0%
5
E MPLOYMENT F ORECAST
Illinois
Total non-farm
Construction
Manufacturing
Trade, transportation & utilities
Information
Financial Activities
Professional & business services
Education & health
Leisure & hospitality
Other services
Government
Number of Jobs
(in thousands)
6200
November
2015
5,927,200
209,200
566,500
1,183,800
November
2016 (p)
5,955,100
213,500
557,100
1,186,400
27,900~55,400
4,300
-9,400
2,600
Growth Rate
%
0.47%~0.94%
2.06%
-1.66%
0.22%
97,600
96,400
-1,200
-1.23%
368,900
937,000
904,500
563,200
256,400
830,900
371,300
943,700
923,000
572,700
258,700
832,300
2,400
6,700
18,500
9,500
2,300
1,400
0.65%
0.72%
2.05%
1.69%
0.90%
0.17%
Number of Jobs
Total Non-farm Employment Forecast
6000
5800
5600
5400
5200
5000
4800
4600
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Year
* The values by sector for the number of jobs added are the lower bound of the forecast.
6
Employment Forecast for MSAs
MSAs
Oct
2015*
Oct 2016
(p)*
Bloomington-Normal
94,900
Champaign-UrbanaRantoul
Chicago
Sector with
Lowest
Growth Rate
(p)
Sector with
Highest
Growth
Rate
(p)
Number of
Jobs *
Growth Rate
%
Growt
h
95,200
300 ~ 400
0.27%~ 0.42%
+
GOV (3.69%)
INF (-14.49%)
108,600
109,000
400~500
+
EDU (2.39%)
CON (-2.11%)
4,041,700
4,095,000
53,200~57,600
1.32%~1.42%
+
CON (4.00%)
MAN (-0.72%)
180,100
179,500
-600~ 400
-0.33%~ 0.24%
-
EDU (0.77%)
INF (-4.69%)
50,600
49,900
-700~-500
-
PRO (-0.02%)
INF (-6.56%)
Kankakee
45,100
44,700
-400~-100
-0.94%~ -0.27%
-
INF (4.19%)
LEI (-2.61%)
Peoria
177,500
178,300
800~900
0.47%~ 0.48%
+
PRO (2.18%)
CON (-1.30%)
Rockford
151,100
150,000
-1,100~-700
-0.70%~-0.45%
-
EDU (1.63%)
CON (-7.79%)
Springfield
113,000
112,700
-300~-100
-0.27%~ -0.08%
-
FIN (1.91%)
INF (-4.81%)
Davenport-Rock
Island-Moline
Decatur
0.39%~0.46%
-1.45%~-0.95%
*Total Non-Farm Jobs
Number of Jobs
(in thousands)
105000
Total Non-farm Employment Forecast
Bloomington (BN)
Number of Jobs
(in thousands)
120000
Total Non-farm Employment Forecast
Champaign-Urbana-Rantoul (CU)
100000
115000
95000
110000
90000
85000
105000
80000
100000
75000
95000
70000
90000
65000
60000
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
85000
2016
Year
Number of Jobs
(in thousands)
4200000
1990
1992
1994
1996
Number of Jobs
(in thousands)
195000
Total Non-farm Employment Forecast
Chicago (CHI)
4100000
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Year
Total Non-farm Employment Forecast
Davenport-Rock-Island-Moline (DRM)
190000
4000000
185000
3900000
180000
3800000
3700000
175000
3600000
170000
3500000
165000
3400000
160000
3300000
155000
3200000
150000
3100000
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
1990
2016
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Year
Year
7
Number of Jobs
(in thousands)
62000
Number of Jobs
(in thousands)
50000
Total Non-farm Employment Forecast
Decatur (DE)
Total Non-farm Employment Forecast
Kankakee (KA)
48000
60000
46000
58000
44000
56000
42000
54000
40000
52000
38000
50000
36000
48000
34000
46000
32000
30000
44000
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
1990
2016
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Year
Year
Number of Jobs
(in thousands)
200000
Number of Jobs
(in thousands)
170000
Total Non-farm Employment Forecast
Peoria (PE)
Total Non-farm Employment Forecast
Rockford (RO)
165000
190000
160000
180000
155000
170000
150000
160000
145000
140000
150000
135000
140000
130000
130000
125000
120000
120000
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
1990
2016
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
Number of Jobs
(in thousands)
120000
Total Non-farm Employment Forecast
Springfield (SP)
118000
116000
114000
112000
110000
108000
106000
104000
102000
100000
98000
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
2016
Year
Year
2016
Year
8
Barometer of Job Recovery
Illinois Recovery Scenarios
Growth Rate
To Recover
At the point of
2015- November
At the point of
2010-June
In 5 years
40,800 jobs/year
104,100 jobs/year
In 8 years
25,500 jobs/year
65,100 jobs/year
In 10 years
20,400 jobs/year
52,100 jobs/year
In 15 years
13,600 jobs/year
34,700 jobs/year
* The figure 546,200 is the number of jobs needed for the Illinois economy to recover to the previous employment
peak, Nov-2000. The gap between the previous peak, Nov-2000 and the previous lowest point, Dec-2009 is
472,100. Adding 74,100, the number of jobs that needed to bring the shadow and official unemployment rates
together, the total number of jobs that Illinois needs to create is 546,200.
** The figure 27,500 represents the jobs recovered from December 2009 (previous lowest level) through June 2010.
*** The figure 342,300 represents the jobs recovered from December 2009 through November 2015.
9
I LLINOIS J OB R ECOVERY BY S ECTOR
Illinois job recovery by sector from Dec 2007 – November 2015
Job Changes in
Recession Period*
Job Changes in
Jan 2010-Nov
2015
Recovery Rate
Forecasted Job
Changes Jan
2010-November
2016
Forecasted
Recovery Rate
Construction
-63,800
5,300
8.31%
9,600
15.05%
Manufacturing
-114,600
11,700
10.21%
2,200
1.92%
Trade, transportation & utilities (TTU)
-97,700
63,500
64.99%
65,500
67.04%
Information
-11,300
-6,800
-60.18%
-8,000
-70.80%
Financial activities
-33,000
4,200
12.73%
6,300
19.09%
Professional & business services
-92,200
155,600
168.76%
162,300
176.03%
Education & health
32,600
82,600
-
101,100
-
Leisure & hospitality
-22,300
51,300
230.04%
60,800
272.65%
Other Services
-5,900
400
6.78%
2,700
45.76%
Government
*Recession period: Dec 2007- Dec 2009
6,000
-25,800
-
-24,000
-


Recovery by
Sector



During the recession period of December 2007-December 2009, 8 out of
10 Illinois sectors experienced negative job growth. Education & health
and Government were the only 2 sectors that had positive job growth
during the recession.
Since January 2010, Illinois employment growth resumed. Construction,
Manufacturing, Trade, transportation & utilities, Financial activities,
Professional & business services, Leisure & hospitality and Other
Services have recovered 8.31%, 10.21%, 64.99%, 12.73%, 168.76%,
230.04% and 6.78% respectively, from the jobs lost during the recession.
By November 2015, Professional & business services and Leisure &
hospitality had both recovered to their previous employment peak levels.
However, the recovery rate for Information is still negative, namely 60.18%.
The 12-month-ahead job recovery forecasts show that the future
recovery rates in Illinois will increase for every sector except
Manufacturing and Information.
10
C ATCH UP S CENARIO
Catch-up Scenario* of Previous Peak Job Index in Illinois
Nation
RMW
IL
Previous Peak
Current
Catch-up
126.49
(Dec-2007)
119.39
(Jun-2000)
115.00
(Nov-2000)
130.93
(Nov 2015)
117.21
(Nov 2015)
112.51
(Nov 2015)
Positive
growth
Positive
growth
Positive
growth
Recovery rates at
November 2015**
19.31%
49.31 %
31.85%
Metro Areas***:
Bloomington
Normal
ChampaignUrbana
Chicago
Davenport- Rock
Island-Moline
Decatur
Kankakee
Peoria
Rockford
Springfield
Metro-East
142.06
(Feb 2002)
116.26
(Jan 2009)
114.82
(Nov 2000)
115.06
(Mar 2008)
112.38
(Jan 2000)
125.66
(Nov 2011)
122.09
(Aug 2008)
122.81
(Nov 2000)
110.94
(Aug 2000)
114.97
(Jun 2001)
133.12
(Oct 2015)
110.33
(Oct 2015)
113.11
(Oct 2015)
109.06
(Oct 2015)
93.91
(Oct 2015)
125.73
(Oct 2015)
114.63
(Oct 2015)
112.07
(Oct 2015)
106.73
(Oct 2015)
106.39
(Oct 2015)
Negative
growth
Negative
growth
Positive
growth
Positive
growth
Negative
growth
Positive
Growth
Positive
growth
Positive
growth
Positive
growth
Negative
growth
NA
NA
108.05%
24.01%
NA
119.12%
27.76%
43.87%
245.10%
NA
* Catch-up scenarios are based on average monthly growth rate over the previous 12 months. Nation already passed its previous peak in February
2005.
**Recovery rates are percentage of jobs added since the last official end of the recession. We have also adjusted for differences in population and
labor participation rates i.e shadow unemployment between the data month and December 2007.
*** Due to lag of data release schedule there is one month of time lag in the catch-up scenario for metro areas.
NOTE: The US Bureau of Labor Statistics and the Illinois Department of Employment Security changed the way national and state employment
data are coordinated to be more consistent. As a result, there have been some significant changes in estimates for Illinois over the past year.
11
CBAI DECREASED IN OCTOBER
This index is based on national indices of leading indicators and is a barometer for the economy, tracing the
path of growth or contraction through to the current period and then forecasts up to 24 months into the
future.

The Chicago Business Activity Index (CBAI) increased to 100.7 in October from 96.1 in September. The
rise is attributed to the job growth in the nonmanufacturing and construction sectors and to the improved
retail activities in the Chicago area.

In October, the national and regional economies shared mixed features. The Federal Reserve Board
announced that the industrial production index decreased 0.4 percent in October after having fallen 0.1
percent in September.

Capacity utilization for the industrial sector fell 0.4 percentage point in October to 77.5 percent. The
Chicago Fed reported that the Chicago Fed National Activity Index (CFNAI) rose to -0.04 in October from
-0.29 in September, led by a rise in the production and employment-related indicators. In the Chicago
region, employment in the manufacturing sector decreased 0.05 percent in October. Employment in the
nonmanufacturing and construction sectors rose 0.44 percent and 0.99 percent, respectively, in October.
Retail sales are estimated to have increased 0.46 percent.


In the coming months, the national economy is likely to stay on the expansion phase. The economic growth
reflected in the CFNAI-MA3 suggests that growth in national economic activity is slightly below its
historical trend. The Bureau of Labor Statistics reported that total nonfarm payroll employment increased
by 211,000 and the unemployment rate was unchanged at 5.0 percent in November. Considering recent
national economic conditions and movements of projected CBAI, the Chicago economy is expected to
continue its recovery trend over the next several months.
Chicago Business Activity Index
CBAI (Current: 100.7)
1 month 3 month 1 year
Historical (ago)
96.1
98.7
106.3
Forecast (ahead)
100.8
97.6
-
12
METROPOLITAN STATISTICAL
AREA LEAGUE TABLES
MSA LEAGUE TABLES SUMMARY*

Champaign-Urbana-Rantoul (2nd to 8th) experienced the deepest fall in October 2015.

Peoria (3rd to 6th), Metro-East (4th to 7th), Bloomington-Normal (5th to 9th) and DavenportRock Island-Moline (7th to 10th) also dropped in terms of rank from last month.

The most remarkable upward moves in October were recorded for Springfield (8th to 2nd),
Decatur (9th to 3rd) and Rockford (10th to 4th).

In the 12-month growth league table, upward moves were recorded for Chicago (2nd to 1st),
Springfield (5th to 2nd), Decatur (8th to 7th) and Kankakee (7th to 6th).

Downward move was recorded for Champaign-Urbana-Rantoul (1st to 3rd), BloomingtonNormal (3rd to 5th) and Rockford (6th to 8th).

In the 12 months growth league table, Davenport-Rock Island-Moline remained in the last place
while Chicago climbed to the first place.
*NOTE: The US Bureau of Labor Statistics and the Illinois Department of Employment Security changed the way national and state
employment data are coordinated to be more consistent. As a result, there have been some significant changes in estimates for
Illinois over the past year.
13
MSA League Tables*: Non-farm Employment Growth Rate
Monthly growth:
Rank
September 2015
October 2015
Rank
Change**
1
Kankakee(1.88%)
Kankakee(0.82%)
1
(+0)
2
Champaign-Urbana-Rantoul(0.31%)
Springfield (0.63%)
2
(+6)
3
Peoria(0.28%)
Decatur(0.56%)
3
(+6)
4
Metro-East(0.24%)
Rockford (0.46%)
4
(+6)
5
Bloomington-Normal(0.05%)
Chicago(0.44%)
5
(+1)
6
Chicago(-0.02%)
Peoria(0.07%)
6
(-3)
7
Davenport-Rock Island-Moline(-0.11%)
Metro-East(0.05%)
7
(-3)
8
Springfield (-0.17%)
Champaign-Urbana-Rantoul(-0.14%)
8
(-6)
9
Decatur(-0.27%)
Bloomington-Normal(-0.18%)
9
(-4)
10
Rockford (-0.36%)
Davenport-Rock Island-Moline(-0.53%)
10
(-3)
Growth over last 12-months:
Rank
September 2015
October 2015
Rank
Change**
1
Champaign-Urbana-Rantoul (1.73%)
Chicago (1.14%)
1
(+1)
2
Chicago (0.84%)
Springfield (1.07%)
2
(+3)
3
Bloomington-Normal (0.71%)
Champaign-Urbana-Rantoul (1%)
3
(-2)
4
Metro-East (0.62%)
Metro-East (0.79%)
4
(+0)
5
Springfield (0.06%)
Bloomington-Normal (0.76%)
5
(-2)
6
Rockford (-0.15%)
Kankakee (-0.05%)
6
(+1)
7
Kankakee (-0.7%)
Decatur (-0.39%)
7
(+1)
8
Decatur (-0.73%)
Rockford (-0.42%)
8
 (-2)
9
Peoria (-0.82%)
Peoria (-1%)
9
(+0)
10
Davenport-Rock Island-Moline (-2.25%)
Davenport-Rock Island-Moline (-2.13%)
10
(+0)
MSA League Tables are based on revised employment data. For instances of equal growth rate for multiple MSAs ranks
are decided based on change of growth rate from previous month.
*
14
Illinois MSA Business Indices & Forecast
Comparing MSAs Indices with Chicago Indices
80.00
60.00
40.00
20.00
0.00
-20.00
-40.00
-60.00
Bloomington
04 06 08 10 12 14 16
Champaign
Davenport
Decatur
Peoria
Rockford
Springfield
Kankakee
*Values below (above) zero indicate that an MSA is performing less well (better) than Chicago.

From early 2007 to early 2009, all MSAs performed better than Chicago.

However, from Mid-2009 to present, MSAs generally performed less well than Chicago
except for Bloomington-Normal.

According to the forecast for October 2016, Bloomington-Normal, Davenport-Rock IslandMoline, Decatur, Peoria, Rockford and Springfield are likely to perform less well over this
period than Chicago. All the other MSAs will compare favorably to Chicago.
15
Unemployment Claims (Initial)
Unemployment Claims
(Initial, IL)
Unemployment Claims
(Initial, US)
40,000
1,200,000
Initial Claims (IL)
Initial Claims (US)
35,000
1,000,000
30,000
800,000
25,000
`
600,000
20,000
400,000
15,000
200,000
Jan/15
Jan/14
Jan/13
Jan/12
Jan/11
Jan/10
Jan/09
Jan/08
Jan/07
Jan/06
Jan/05
Jan/04
Jan/03
Jan/02
Jan/01
5,000
Jan/00
10,000
0
16